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tv   The Kudlow Report  CNBC  November 14, 2013 7:00pm-8:01pm EST

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you know i will be and i got to meet the legendary great voice of american greed stacy keetch. he is great and does a great job. i'm jim cramer, i'm jim cramer and i will see you tomorrow. i said that i would do everything that we can to fix this problem and today i'm offering an idea that will help do it. the bottom line is, insurers can extend current plans into 2014 and american plans that have been canceled can choose to reenroll in the same kind of plan. but i think it's fair to say that the improvement will be marked and noticeable. the website will work much better on november 30th, december 1st than it worked certainly on october 1st. that's pretty low bar. >> promise after promise from
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this administration has turned out to be not true. so when it comes to this health care law, the white house doesn't have much credibility. and let's be clear, the only way to fully protect the american people is to scrap this law once and for all. there is no way to fix this. >> president obama flip-flopped to allow people to stay on their canceled insurance plans and i think it was bill clinton's body slam on tuesday that forced obama to take back his lie and his lying about the lie. but there may be less here than meets the eye. it's up to state insurance commissioners and the insurance companies themselves and whether cancellation recoveries will be less than you think or more. speaker boehner says there's only one solution. get rid of the whole thing right now and i find myself and ggree. we're going to talk about a conservative alternative to obama care.
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and the interest of the doves. janet yellen says there are no bubbles in stocks or elsewhere and you know what, i agree with her. all of those stories and much more coming up on "the kudlow report" beginning right now. good evening. i'm larry kudlow. this is "the kudlow report." we're live here at 7:00 p.m. eastern and 4:00 p.m. pacific. president obama said you can keep your health insurance if you like your health insurance and then the pink slip cancellations rolled out. now, in a bid to quell the firestorm that erupted when his promise turned out to be false, president obama said, okay, fine, if you like your plan you can keep it until next year. joining us with all of the details, good evening, john harwood. >> good evening, larry. i think there is less than meets
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the eye. the president said he was giving some insurers and state insurance commissioners the authority to extend plans by some extent even past 2014 as late as september 2015 if they choose to and many of them have chosen not to. that's because they are moving to the new world post-affordable care act with a new rate structure, risk pool, a new list of people to be insured that are expensive and therefore rates going up for some of the people enjoying plans who are healthy who haven't had a lot of health care expenses so far. so i think it's fair to say that this is more about political cover than actually changing the guts of the law and i think the calculation from the administration, layer larry, is that the president can buy some time with this until the website is working more effectively than he believes and democrats who support the law believe can get on the website and see that they are going to be better off under
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obama care and even if their policies were canceled. the other part of what the president did today was to extend the policy to those misled by his promise and to say that he was apologetic for fumbling the rollout. he put it in football terms. he said we fumbled in a big game but he can get the website fixed and quell who may have to vote on plans as early as tomorrow that may gut the law. >> john, i haven't thought about this. you're saying he's giving permission. i guess that's the right word. to state regulators to have insurance companies come up with either new plans or old plans? i'm not sure i understand that. >> he's not compelling anyone to do anything. that's why this may not have very much effect. what he's saying is that insurance companies -- insurance commissioners who regulate insurance at the state level, if
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they choose, can extend policies as late as september 2015 if the policies are in effect right now. and insurance companies can offer those policies as late as september 2015 if they are in effect right now. but remember, many states and insurance companies don't want to do that. in fact, some of the biggest states have already said no to earlier proposals to extend some of these canceled policies into 2014. some states have barred -- that's a practice called early extension. many states have barred that. so, again, it's not clear that this is going to change a whole lot. it may change some policy availability for some people. but i do think it's more about politics than actually changing the policy. >> early renewal. thank you. i didn't know that. let me ask you follow up, next one, tomorrow is a vote on the fred upton bill that would allow people to keep their insurance and actually let new people go
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back and get the old insurance forever and then i'm going to ask you, after that vote, is there going to be a senate vote? it sort of all seems like a push comes to shove in the senate with the mary landrieu vote. do you think it will happen after today's obama news conference? >> i doubt it. this is one circumstance where gridlock is the president's friend. the prospect of anything getting through that would seriously get through the house and the senate and the two sides agreeing on that is extremely low, probably right next to zero. >> wow. >> so i think the upton bill is likely to pass the house of representatives but we saw the dianne feinstein, one of the co-sponsors of the landrieu bill saying that she is satisfied what he's done.
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if democratic members decide that the heat is too much, we may see a vote in the senate but as of now i wouldn't expect one any time soon. >> all right. that is all very interesting. i can't thank you enough. john harwood in washington, d.c. now for the gop's reaction to today's news. editor and national view washington editor, robert costa. i think you might have heard john harwood's report. i want to ask you, regarding the fred upton vote in the house, some conservatives are saying vote against it because it helps to prolong obama care. what's your take on that in what are you hearing? >> you do see a discussion that obama care stumbles have been so great so far, you might as well stand back and let the implementation continue to have its problems. i think the majority of the house republicans are coming around the idea to support the upton bill tomorrow to let people take a stand on keeping
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their plans. >> and do you think that obama's speech today is going to influence democrats in the house or the senate? >> i think democrats, especially those up for re-election in 2014, remain uneasy. the president's press conference today wasn't exactly a tour de force. it was more of an explanation. he was trying to get democrats back on his side but i think the problems persist. >> and do you think there will be a vote in the senate? >> i think harry reid knows that he needs to throw some kind of a bone for those up for re-election next year but it becomes a problem for the white house if he brings something like that up. i think harwood is right. he's undecided. >> robert costa, thank you. later in the show, i'm going to be joined by senator ron johnson and steve scalise at 7:30. first up, let's ask our health care experts what they think
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about the president's announcements today. joining us is gavin newson, bob, president of health policy and hchl hadley heath. there may be less there than meets the eye regarding what president obama said as reported by our own bob harwood and robert costa. up to the insurance commissioners, up to the insurance companies themselves. do you think canceled policies will be restored in any bulk size? >> probably not. this is really an administrative mess. one company has said that they are going to try to do it, florida bluecross. most other companies are having a good time with this. this is nothing more than the president throwing the hot poe pat toe about cancellations back to the health insurance companies. the insurance companies, to do this, only have 31 days to right
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the ship here. this is coming from the president who built healthcare.gov in three years and it doesn't work and he's telling the insurance industry that in 31 days, because december 15th is the deadline, that they've got to reverse all of this. they've got to send a letter to the policyholder, tell them the difference between their policy they have now and obama care. they have to send it through the u.s. mail. they have to give the policyholder time to make a decision. they have to rejeger the premium payment systems, bank debit systems. do all of this in 31 days. it took the insurance companies months to get ready for obama care and they either say they are going to do it and have just a technology logistical nightmare, probably lots of customer service problems, or they say they are not going to do it and guess what, if they don't do it, whose the
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cancellation fault? the insurance companies. >> they are going to blame like they always are. lieutenant governor gavin newsom, california has had a million or more pink slip cancellations. what do you think will go on there? will any of the cancellations be returned in will there be renewals? what is commissioner jones going to say and what are you hearing from the insurance companies? >> all to be determined. this is a mess. let's be candid and open and honest about this and not ideological. this continues to get messy. bob's assessment is as good as any. you're right, dave jones, our insurance commissioner, will have to take a look and not surprisingly the companies are not happy about it. they are looking for a different kind of mix and they want to see young, healthy people in the mix and that's becoming a clearer challenge for us. let me just say this, as someone that's a very strong supporter
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of the implementation thoughtfully done of the affordable care act, california is doing the best as anyone else in the country, we are doing our best not to have the partisan acrimony that is defining this debate in washington, d.c., and we're making real progress but there's no question that it you ever as more questions than answers. >> gavin, you're lieutenant governor. what's your druthers? i'm just saying, what do you want them to do? do you want them to satisfied outcry and have some of these renewals? i know it's hard, as bob said, is that what you want? or not? >> i do look at my insurance was canceled. i want that addressed. so the answer is, yes, we'd like to see that addressed. but i think it's pretty clear and john at the top of the show was pretty, i think, accurate. this was a political decision more than it was a policy. but the policy implications of
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doing that and resolving it for the million plus people in california are very significant and that could be a bigger political problem in the medium and long term. >> hadley, if this thing doesn't work, if you don't get many renewals, if the president's blame on the insurance companies, as bob suggested, works and they are probably aiming at that, where does this leave the republican party? boehner sounded very defiant today. he says, end it. end it. so that means why vote for fred upton's bill, for any bills, mr. president, you made this bed, now you've got to sleep in it. >> i agree with john and gavin who had said that the announcement is more about political coverage than insurance coverage. i think the american people will see through that. in a poll this week, americans two to one say this law will make their personality health care experience worse. yes, i think it's time for republicans to come out and say we need to repeal the law in its
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entirety. they have been saying that. they have been criticized for taking 40 votes that will repeal the law but those are 40 democrats that missed the opportunity to change this outcome. >> you guys are all going to stay, bob, hadley, robert. i'm going to talk about adverse connection and i see a financial imbalance that could bring down this entire insurance plan. coming up, speaker john boehner says we've got to scrap obama care. we will talk to two top republicans about what kind of alternatives are possible. janet yellen makes no bones about it. she will keep the easy money policies of ben bernanke in place. well, what else do we expect from the emporess of the doves?
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t"the kudlow report" will be right back.
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. we welcome back our panel of health care experts, lieutenant governor gavin newsom and hadley independent forum senior policy
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house. lieutenant governor newsom, i want to ask you about medicaid. the reports all around the country is that the biggest sign-ups by far. >> it's certainly true. we depend on what date you use. about 79,000 people that have gone through our exchange that we've identified as eligible and medicare and medicaid in california, about 59,000 probably update that have an opportunity and there's a disparity. you're correct. you're not wrong about some of the challenges as it relates to the quality of care and the
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reimbursement ca reimbursement associated with medicare and medical. >> various reports from all around the country, california being such a big state. bob, let me ask you a big one. small group insurance, all right, they are going to get there -- we talked about this last night but they are going to get their renewal slips. they are going to have the very large, as i understand it, 30 to 40% premium increases. what if they say no, bob? what if they decide they'd rather pay the penalty and go off on their own? >> you're absolutely right, larry. what is going on is the next shoe in obama care is dropping. just this week, the january 2014 small group renewals went out. i'm talking about brokers around the court and they are receiving them and the rate increases are pretty stiff. the people in the small group,
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under 50 memployee markets have to have the same individual market. these mandates, the small employers now are getting the same thing. and so you've got a lot of small employers that are thinking about continuing their insurance and they are getting hit hard. >> all right. so those funds have not come in. hadley, here's where i'm going with this. if the young people, so-called young healthies don't sign up, if the small business people don't sign up, if other larger business people don't sign up as it comes out next year, how is it that these premiums are going to somehow finance the increase in insurance claims that are going to come from the holder, sicker cohurt in it seems like a massive imbalance to me and who is going to pay for it or does that drag the whole system down. >> exactly.
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the numbers were low but it's also a concern about not just the size of the pool but the shape of the pool. we need people who are young and healthy and willing to pay the premiums for coverage that they don't need and that may be the case for many young people. when we look at the affordable care act and young people, they could be coming from different circumstances. under 26, you may be on your parents' plan and unaware of that cost. this is not a good deal. >> if you do go back to your insurance policies, bob, that some people will, i don't know what the numbers are going to be but if you go back to them, that's another drain on the premiums and i just don't see this -- to me, this was the fundamental structural problem in obama care. i'm going to say it's a fiscal issue. what are we going to do about this? >> you're hitting on the right point. you really have to have the same rules for everybody, whatever
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they are. the problem with obama care is the rules and the regulations and benefit mandates are so stringent that it exploded the costs. but you do in fact need one pool. hopefully we can have one pool that is reasonable. by having all of these mandates, they've created a structural imbalance in terms of pricing. if the president wants some people to take the old plans and some people the new plans, what i'm hearing from insurance executives right now is that they think it's going to be a bigger mess because people who can make money in obama care are going to take that deal. people who can make money in the old plans are going to take that deal and both pools are going to have serious problems. i don't know who is advising the president and how the insurance market works but every time they make a move, they are mucking it up worse. >> gavin, don't know why the federal government doesn't work
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out something with the states and just subsidize somehow maybe through vouchers or tax credits or whatever, those who are older and sick and have trouble getting insurance, god bless them, we have to help them. we're a great country. but there's better way to do it than taxes and mandates and mandates and this and that. it seems like we could have done it that way. >> change is difficult and you can't be ideological about this. you have to be interested in evidence. i applaud the president for acknowledging the obvious. >> listen to me, i'm not being ideological. let the government help these people. i'm all for it. and that's probably a very un-reagan, unconservative and free market message but we can afford it and it would make everything simpler. >> we're dealing with the cards that are dealt. we know it costs a lot less
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money to keep you well than to treat you after you are sick. three million people are desperate for health insurance. 60,000 people think that the exchange worked pretty well considering the difficulties here in california. we want to work with this president. we don't want to see this thing thrown out but we don't want to be ideological about the challenges that are self-evidence as we move forward, not just over the next few months but over the next number of years. >> all right. it's going to be a tough call. gavin newsome, bob, hadley heath. next, how the health insurers reacted to the president's announcement today. and also look at this, a giant sinkhole in florida. seema mody will bring us that story on "the kudlow report." stay with us.
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welcome back to "the kudlow report." i'm seema mody. health insurance stocks reacting positively to president obama saying that they can keep plans that they had. aetna and wellpoint and united health and cigna closing higher. a judge giving whitey bulger sentenced to two life terms plus five years. he's 84 years old.
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tina turner has given up her citizenship for tax reasons. though turner is living in high-tax switzerland, that probably wasn't her motivation. 2013 is likely to set a record for the number of people forfeiting their citizenship, more than 2300 have done it already. and we want to show you this giant sinkhole in florida. it's 70 feet wide and 53-feet deep. it's swallowed a boat, a swimming pool and two houses are in danger next. six homes were evacuated. given the carbonate rocks in florida, they soak in water that can dissolve. that's a common trend in florida. >> i'm crushed that tina turner is giving up her citizenship. >> i was a little surprised. >> switzerland is a funny place. there are areas that there are no income taxes.
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one of them is zuge and it's where a lot of money managers and investment people have moved. i believe it's outside of zur m zurich. i could be wrong. no taxes. but it's mighty cold there. thanks to seema mody. republicans seem to have two options for obama care. they can health the president save it or let it collapse and then provide a conservative replacement. we're going to talk to two top republicans about their plans for dealing with obama care next up. ♪
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promise after promise from this administration has turned out to be not true. so when it comes to this health care law, the white house doesn't have much credibility. and let's be career, the only way to fully protect the american people is to scrap this law once and for all. >> all right. welcome back to "the kudlow report." so is speaker boehner right? is it time to scrap the obama care train wreck and start over? and, if so, are conservatives prepared to offer up their own solutions? here now is steve scalise, chair of the republican study committee. his alternative health care bill gained its 105th co-sponsor
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earlier today. also with us, republican ron johnson who is sponsoring a bill that would allow americans to permanently keep their existing health care plans. the house is going to vote on that bill tomorrow. senator johnson, quickly, did any change today with president obama's speech, which we are describing which is less there than meets the eye, to reyou knew the canceled policy. >> there are no legal authorities to do so but also what he's proposing is simply not going to work. we've already got so much damage already caused by obama care into the individual insurance markets, all of these plans have been approved by state regulators, the rates have been approved, it's hard to turn the back on this. state high risk pools are being disbanded first part of the year. it's going to be pretty
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difficult. i don't see how president obama, other than making a political statement, is about the only thing that his executive order is going to accomplish. >> all right. steve scalise, welcome back. also, what would you put in its place? what would you put in its place? what would your main bullets be for a conservative republican health care plan? >> well, larry, it's good to be back. the main thing we would do is first re-establish the relationship between the doctor and the patient and empower families to be in charge of their health care, not washington politicians. so what we do in the health care reform act is allow people to buy insurance across state lines. let them go and broker a competition if they find a plan in a better state, let them buy it. let small businesses pool together to get the same buying power as a large business. we invoke more competition and transparency so people can find out what plans cost. we increase health savings
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accounts. one of the untold success stories in health care are health savings accounts. again, it empowers people and let's them make the choices with their doctors of what kind of health care they want. it's all based on market solutions in empowering people. you can't fix this law. the president is realizing this. he knew that millions of people would lose their plan but the foundation it's built upon with all of the taxes are showing what we said years ago, that the president's health care law is going to destroy the things that work really good for people and health care and we're seeing that play out. >> senator johnson, i want people to have the freedom to chos their own health care. i don't want mandates jammed down my throat and whatnot. let me ask you this, a lot of the conservatives have been a shift in tax policy where the deductions or the tax credits -- call them deductions -- employers have huge deductions.
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why not either cap that or get rid of that and shift it to the individuals and the families so they get the tax deduction and they can go shopping, as steve scalise said, across state lines and else where. so tax reform goes hand in hand with consumer choice. >> really the basic premise of the republican proposals would be freedom, allow people to have that choice. you're exactly right. we need to, at a minimum, equalize the tax. you get it with pretax dollars and we really need to reconnect the consumer of the product with the payment of the product. there are far more wiser choices being made by consumers with price transparency. you've got to reintroduce the system into health care. that's how you improve quality and customer service. the free market competitive system is a marvel. we ought to use it in our health care system.
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>> steve s krccalise, if your employer gets a deduction, you heap on the health care benefits and you spend it. some places have large co-pays, other places don't have large co-pays. certainly the large unions don't have large co-pays but private unions, too. that system has to change. it goes back to the late 1940s to dodge wage and price controls after world war ii. isn't it time to give the tax deduction to the individuals, all right, so they can protect themselves for catastrophic and they know what precisely they are spending on health care. >> exactly, larry. in fact, we do that in our bill, the american health care reform act. we equalize treatment because you shouldn't be limited to your employer. if your employer provides good insurance for you, that's great. but shouldn't you be able to buy that plan for your family and not have to pay with after tax dollars and deduct those costs like your employer can deduct
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them for that plan so we equalize it. it's one of the things that is attractive about our plan and empowers families to put them in control of their health care decisions and why we have 100 members of congress. >> freedom of choice, tax reform, low responsibility and where you are spending this stuff. i think everybody is on the right track. i think they are good alternatives. we will see if they surface and obama care is going to completely breakdown. steve scalise, senator ron johnson, thanks. up next, no market bubbling. that's from janet yellen's senate testimony. i agree with her. but is qe working or not working? that is the question we will debate next on kudlow. i am today by luck.
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♪ ♪ we expect to maintain a highly monetary policy for some time to come thereafter and the message that we want to send is that we will do what is in our power to assure a robust recovery in the context of price stability. >> all right. pretty clear, that was fed head
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nominee janet yellen testifying before the senate banking committee. let's talk about this. one question for us tonight, is quantitative easing helping or hurting economic recovery? let's talk. let's welcome andrew hooser whose managed the fed's mortgage back security purchase program back from 2009 to 2010. he recently wrote "confessions of a quantitative easer." and also our cnbc contributor, jim, from the american enterprise institute, is also with us. jimmy, i want to start on a high note. janet yellen said there's no bubble. i agree with that, all right? i hear all of this bubble talk on our network and here in new york, gold prices falling, commodity index is falling. i know the stock market is rising.
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but meultiples are not out of te question. what about this bubble mania? janet got that right, didn't she? >> she absolutely did. it's like a case with the generals fighting the last war. i don't see bubbles out there. you have people looking everywhere for any sign of inflation, seeing inflation. inflation is not there. so i think it's good that we're going to get a fed chairman who is going to keep one thumb on the real problem on the side of the scale and that's employment. listen, i would like to take this opportunity to thank andrew for being part of team bernanke, the team that helped keep us out of a depression through its bond buying and helping a hero be out of the depression. >> do you feel heroic? >> that's an inspiring comment. i appreciate that. i feel apologetic. ultimately i feel as we had an incredible wake-up call with a banking sector that doubled in size and became 20 times more
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concentrated in a span of 20 years and five years later we have an economy that looks very similar where the banks have done well and have become more concentrated and larger and the average american is falling further behind in terms of immediate income in terms of -- >> this is a key one. i want both of you to weigh in. kevin, former board member makes this case. stanley truck and miller makes this case. a lot of smart people make this case. th that qe has worked for the big boys and girls but not for the main street in business. why do you think that is and is it true? >> in 2009 you saw after a negative year of earnings the year before you saw $137 billion of earnings of the five big banks and what has happened is the bond purchases have essentially gone through the dealer network of the federal reserve and those banks --
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>> here in new york? >> exactly. and those banks, what they did, ultimately -- and i believe that qe 1 had some value. i said it all along. my real issue is that we kept on doubling down on a policy that while i was there we were seeing what wasn't working in terms of creating credit easing for the average american. there were not knock-on benefits. >> you yourself have been very critical of the employment and jobs numbers, okay? you've done a great job. the participation rate, all-time lows, and employment to population terrible. it's not been a real jobs recovery when you measure it properly. >> absolutely not. >> that's something you've written about. so i ask you why are you so keen on ue? the fed can't produce jobs. >> well, you know, it's amazing. every time we had a qe program, something good has happened. stocks have gone up and just
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over the past year, isn't it kind of an interesting mystery why we've had all of this austerity, spending cuts and big, big tax cuts this year and job growth is actually better this year than last year? i think the counterfactual is that if we would not have had the round of qe this year we very well may have slipped back into our inflation. i'm not taking any advice from anyone in the eurozone. >> your response? >> i think that ultimately the -- germany is an exception but ultimately the policy itself, 160% up in the markets. we've seen markets -- whenever the q is buying, the fed is
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buying, down whenever the fed is not buying. it's very important. >> that's a fundamental story. the stock investor is feeling about growth. how do you explain, having all of that austerity and it's actually faster this year than last year. >> the austerity, because we're in a recovery, we're five years removed from a crisis. you're going to have a gradual recovery over time. the underlying conditions for america is not improving. we are 25th in infrastructure compared to -- >> that has nothing to do with the fed. that is not the fed story. you're right. the fed cannot -- >> exactly. >> it can prevent us from slipping into a depression and the ecb, when they are about to go into a triple dipper recession, my gosh, they raised interest rates in 2011 twice. >> we're going to run out of time.
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andrew, with your statement and commentary in your discussion tonight, do you agree or not with janet yellen's testimony, which was more qe, more of the same. is that right direction or wrong direction, in your professional judgment? >> i think it's wrong. when they asked her how qe works, we have yet to have a credible mechanism of qe. ultimately her testimony today was i believe qe works and ultimately the fed does not have the tools. i agree. the fed does not have the tools to actually create business growth. >> jim, i'm going to give you -- i just want to ask you, is qe -- they are going to stay with qe. there's no question as what miss yellen is talking about. right direction or wrong direction, jim? >> i think staying with it is the right direction unless, of course, you're shorting it and that's the wrong direction. they would raise interest rates, forget about the qe and slide into a recession.
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hot potato and expectation. it's not just bank reserves. >> all i'll say, how about lower marginal tax rate reform for individuals and businesses? how about regulatory reform and how about incentives for entrepreneurship which is what i think really creates jobs? all right? a long time ago somebody taught me the fed can produce money but it can't produce jobs. we'll leave it there. andrew, appreciate it. very well argued out. up next on "kudlow," the dow and s&p r0rding new highs once again today. can anything stop the new market? is this the janet yellen new market fresh off her testimony? that's when we come back on "the kudlow report."
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welcome back to "the kudlow report." i'm seema mody. the market closing for a high for the 37th time this year. nasdaq gaining seven points and getting ever so close to 4,000. investors cheered janet yellen signals to continue quantitative easing and stock specific action, walmart higher despite third quarter profits one cent above profits but revenue fell short of street consensus. and cisco took a beating today. and predicted drop for revenue in the second quarter because of
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weak demand and emerging markets and the biggest loser on the s & p market. >> what could possibly disrail this bull? our great pal jon najarian, co-founder of "option monster." thank you, jon. i want to try this out with you. i know -- i don't know whether you're a bull or a bear. i've got to catch you. >> more bull than bear. >> here's, i think, what would kill the market is if economic growth was fo4 or 5 or 6% out o the blue. in other words, not a recession or a double dip but if it just blows the lid off the economy in which case liquidity would be absorbed from the economy, liquidity would be absorbed from the stock market and the fed
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with genuinely tighten. that's my theory. since i don't believe we're going to have a 4 or 5% growth, i'm a bull. >> i'm a bull, too. i think that would be better for the american people. >> right. >> not as good for the stock market, i agree with you 100%. but we're not seeing anything of the sort nor are we seeing our trading partners, europe just cutting their interest rates last week, taking them -- cutting them in half, if you will. i know it's only half an interest point but when you're getting down to these levels and they still have that 12% unemployment that jim was talking about, you've got a real problem and that along with the fact that we're not creating jobs at the pace that we shared, larry, that means that janet yellen is going to continue to do what she told the senate she would do and that is not taper and keep quantitative easing. >> in the '80s and '90s, you had
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3% growth. it was wonderful. supply taxes and lower regulations and the federal reserve basically kept the inflation down. volcker got it down. gold was pretty even keeled during that time. i'm not against growth. i'm all for growth. but i'm saying, doug, if there was a shock to the market right now it would come in the form of faster growth. that's all i'm saying in the short run. your take? >> i agree with you what you said before. first of all, qe is not a sustainable policy, like you said. cutting corporate income taxes, some pro-growth economic policies. we need to take the time to grow the economy with good policies. qe is not sustainable. but i kind of don't agree with you. i think you need to look at what is going on in the emerging markets. there is growth 5, 6, 7% and that's where u.s. corporate
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profits are getting their growth. so it's not too far away. and i think the fed risks being behind the curve if they continue this qe for too long. it's okay right now but they are really testing the limits of qe and they are in a dangerous time because i think high growth is right around the corner. i think it's a global expansion. >> and i have to add corporate profits to the mix. without corporate profits we wouldn't have gotten this kind of stock market. jon, i'm for growth. i love grove. supply side growth, we had it in the '80s and '90s. i'm just say beining, if someons me what could go wrong in in the short run? much better action and i'll give you the last word real quick being jon. >> again, i'd take that in spades, larry. i'd love to see us taper soon other. i just don't think any of the
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evidence out there is what is going to drive -- >> thank you, gentlemen. jon najarian, never have enough time. you are both great. that's for watching again, folks. i love growth. if you're looking for shocks in the short run, stronger growth and change in the fed will probably do it. anyway, i'm larry kudlow. give me lower tax rates every time and we will see you tomorrow night.
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